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The clock is ticking on BHP’s (NYSE:BHP) ambitious $43B bid to acquire smaller rival Anglo American (OTCQX:AAUKF), as the Australian mining giant has till 5 pm London time on Wednesday to make a binding takeover offer.
Anglo American (OTCQX:AAUKF) has already rejected two offers from BHP (BHP) and instead revealed a major company overhaul that includes the sale of its steelmaking coal and nickel businesses, and potential divestment or demerger of its platinum and diamond units.
BHP (BHP) CEO Mike Henry last week said he remains “wholly confident” in the improved $43B offer, saying it will be up to Anglo American’s (OTCQX:AAUKF) shareholders to determine which company is best positioned to deliver value.
“It is up to BHP (BHP) to try to convince enough of Anglo’s (OTCQX:AAUKF) institutional shareholders that it’s worthwhile pressuring their board to engage with BHP, with a potentially even higher offer on the table should this occur,” Jon Mills, analyst at Morningstar, had said.
If BHP (BHP) decides to stop pursuing a deal, it will have to stay away for at least six months, according to U.K. takeover rules.
Analysts expect the world’s biggest miner to return with a third improved bid for Anglo American (OTCQX:AAUKF), with J.P. Morgan saying the offer needs to be improved by about 30%.
There is a strong possibility that BHP (BHP) may end its takeover pursuit as it does not want to bid against itself in a vacuum, people familiar with the matter told Bloomberg.
